Louisiana Senate Bill SCR2

Louisiana 2016 1st Special Session

• Introduced: 2/15/16
• Refer: 2/15/16
• Passed: 2/17/16
• Engrossed: 2/17/16
• Refer: 2/18/16
• Refer: 2/24/16
• Report Pass: 2/25/16

Caption

Provides relative to the Budget Stabilization Fund. (2/3 - CA7s10.3(C)(2)) (EN +$128,459,664 GF RV See Note)

Impact

If enacted, SCR2 will provide immediate relief to the state budget by utilizing funds from the Budget Stabilization Fund. This resolution is particularly critical given that the state has seen continuous revenue shortfalls caused by declining oil prices and a decrease in tax collections. By enabling this appropriation, sponsors of the bill hope to stabilize the state's financial standing and support essential programs potentially jeopardized by the deficit, including Medicaid and education funding.

Summary

SCR2 is a Senate Concurrent Resolution that addresses Louisiana's Budget Stabilization Fund amidst a significant financial crisis marked by declining revenues and increased expenditure shortfalls. Specifically, the bill authorizes the appropriation of $128,459,663.85 from the Budget Stabilization Fund in order to help address a projected operating deficit for the fiscal year 2015-2016. The resolution emphasizes the necessity of employing these funds to manage the state’s serious financial challenges attributed to various economic factors, including decreased oil and gas prices, as well as a reduction in corporate and individual tax revenues.

Sentiment

The general sentiment surrounding SCR2 appeared overwhelmingly positive among its supporters, with an evident bipartisan consensus. Legislators recognized the urgent need to inject funds into the general fund to address pressing state obligations and prevent further financial declines. Conversely, while not prominently noted in discussions, there remains an underlying concern regarding the long-term implications of consistently utilizing the Budget Stabilization Fund to address operational deficits, sparking discussions about fiscal responsibility.

Contention

One notable point of contention regarding SCR2 centers on the reliance on the Budget Stabilization Fund, as some legislators express concerns that frequent appropriation of these funds could undermine the state's financial stability in the long run. Though there was strong support during voting, the continued economic volatility raises questions about the durability of such budgetary solutions and the importance of developing clearer fiscal policies to prevent future crises.